In 2025, billionaire Bill Ackman invested in Amazon and Meta Platforms, citing their use of AI to drive growth and efficiency. Amazon’s median target price is $285, 43% above its current price of $199, while Meta’s target price of $850 is 32% higher than its current price of $640.

Ackman’s investment in Amazon is based on its e-commerce and cloud computing dominance, with AI innovations boosting revenue and profitability. AWS, the largest public cloud service, is seeing rapid growth driven by AI products and services. Wall Street expects 17% annual earnings growth over the next three years.

Meta Platforms, the second-largest ad tech company, excels in user engagement and ad performance through AI. It leverages AI for smart glasses, dominating the market with 70% of sales. Analysts predict 19% annual earnings growth over three years, making its current valuation of 27 times earnings attractive.

Considerations for investing in Amazon include the Motley Fool’s 10 best stock picks, excluding Amazon. Their picks historically outperform the market, with an average return of 884%. Ackman’s confidence in Amazon and Meta Platforms aligns with promising growth projections and AI-driven strategies.

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